91-1248 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: )

:

: FINDINGS OF FACT,

XXXXX : CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-1248

______________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The periods in question are the fourth quarter of XXXXX and the first and third quarters of XXXXX.

3. The Petitioner started business in XXXXX. Although he was aware of his obligations to pay sales tax, because of the general confusion that exists when starting a business, he forgot to file and pay the returns for the quarters in question.

4. The sales tax owed for the periods in question were $$$$$, $$$$$, and $$$$$ for the fourth quarter of XXXXX and the first and third quarters of XXXXX respectively.

5. As a result of the failure to timely file and pay the taxes due, the Petitioner was assessed penalties in the amount of $$$$$, $$$$$, and $$$$$ for the respective quarters.

6. Petitioner testified that he was never notified by the Commission that taxes were due and owing or that penalties had been assessed until he applied for a loan on XXXXX, but was denied because of the liens which had been placed on the business.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)

DECISION AND ORDER

In the present case, the Petitioner argued that because he was never made aware of the fact that the returns were late and that penalties had been imposed and also because of the confusion as to the exact amount of penalties which had been assessed, part of the responsibility for the delay should rest with the Commission.

The Commission finds that the Petitioner's argument is without merit. The responsibility for timely filing and timely paying any sales tax due rests with the taxpayer. The taxpayer cannot shed that responsibility to another party when, as here, no reasonable basis for the untimely filing exists other than the taxpayer simply forgot to do as required.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties associated with the fourth quarter of XXXXX and the first and third quarters of XXXXX. It is so ordered.

DATED this 20th day of November, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner